Senegal: Business Environment

Accounting Rules

Tax Year: The fiscal year begins on January 1st and ends on December 31st of the same year.
Accounting Standards: A new Common General Accountancy Plan, named as the West African Accounting System was put in place in the Western African Union since 1st January 1998. For more information, consult the website Invest in the Franc Zone. The main objective: establishing uniform accounting practices in the Union so as to have homogeneous data.
Accounting Regulation Bodies: West African Accounting Council
Accounting Reports: A balance sheet, a profit and loss account, and the annexes. For more information visit the website of the West African Economic and Monetary Union (UEMOA).
Publication Requirements: At the end of each accounting year, companies have to produce summary tables and financials which include:
- Statement of financial analysis.
- Statement of patrimonial accounts balance
- Balance sheet, profit and loss account
- Funds statement and evolution of the working capital
- Identification form of the company
- off-balance sheet commitments (contingent liabilities)
- Statistical annexes
These various tables and documents are presented on normalized printed forms, called CUCI states (Single Centre for the Collection of Information).
Professional Accountancy Bodies: ONECCA , National Order of Certified Public Accountants and Chartered Accountants of Senegal.
Certification and Auditing: The financial statements of companies must be audited by a qualified auditor member of the ONECCA.
You can consult an external auditor: Ernst&Young, Deloitte, PricewaterhouseCoopers.
Accounting News: Einnews

Tax Rates

Consumption Taxes

Nature of the Tax: Value Added Tax (VAT)
Tax Rate: The standard rate is 18%.
Reduced Tax Rate: The reduced rate is 10%. It applies to domestic products, imports of some goods and services (in particular consumer products: fruit and vegetables, paper, etc.) and tourist industries.
Other Consumption Taxes: Special taxes exist on alcoholic beverages, vehicles and cigarettes.

Learn more about Service Providers in Senegal on Globaltrade.net, the Directory for International Trade Service Providers.

Corporate Taxes

Company Tax: 25%
Capital Gains Taxation: Capital gains are taxed at the same rate as normal income.
Main Allowable Deductions and Tax Credit: Deduction of reported profits from half of the expenses undertaken during the year with respect to real estate or securities in real estate (limited to 50% of the taxable profits realized, with the outstanding balance deferred during 8 years). The percentage of authorized deductions is increased to 30% for investments in the sectors of solar and wind energy without surpassing an amount equivalent to 25% of the taxable profits of the year.
Capital gains realized during the business activity is exempted provided it is reinvested in real estate within a period of 3 years.
A deduction, in excess of the depreciation, is provided for the renewal of tools and material. This provision is calculated according to an annual indice taking into consideration the inflation.
Other Corporate Taxes: Company tax on vehicle, stamp/registration duties, tax on real estate, business licence tax. For more information consult the website of Invest in the Franc Zone.

Country Comparison For Corporate Taxation

	Senegal	Sub-Saharan Africa	الولايات المتحدة	Germany
Number of Payments of Taxes per Year	59.0	37.3	11.0	16.0
Time Taken For Administrative Formalities (Hours)	666.0	315.1	187.0	215.0
Total Share of Taxes (% of Profit)	46.0	68.0	46.8	48.2

Source: Doing Business - Last Available Data.

Individual Taxes

Tax Rate

Individual income tax	Progressive rate from 0 to 50%
CFA 0 - 600,000	0%
CFA 600,000 - 600,000 - 890,000	18%
CFA 890,000 - 1,010,000	22%
CFA 1,010,000 - 1,410,000	25%
CFA 1,410,000 - 2,475,000	28%
CFA 2,475,000 - 3,540,000	30%
CFA 3,540,000 - 7,650,000	35%
CFA 7,650,000 - 9,650,000	40%
CFA 9,650,000 - 12,650,000	45%
Above CFA 12,650,000	50%

Allowable Deductions and Tax Credit: The deductible charges include: the arrears of pensions or alimony, the premiums of life insurance, the assessed income is divided into a certain number of shares fixed according to the dependents of the taxpayer.
Special Expatriate Tax Regime: There is no special expatriate tax regime.

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed: See the list of Tax Conventions
Withholding Taxes: Dividends: 10%, Interest: 6/8/16/20%, Royalties: 20%
Bilateral Agreement: Senegal and Egypt are not bound by a double taxation treaty.

Sources of Fiscal Information

Tax Authorities: General Tax Directorate
Other Domestic Resources: Information on taxation for companies

Learn more about Taxes and Accounting in Senegal on Globaltrade.net, the Directory for International Trade Service Providers.

Intellectual Property

National Organizations: The trade marks, patents, and copyrights are protected within the framework of OAPI, The African Organization for Intellectual Property.
Regional Organizations: Senegal is a member of the African Intellectual Property Organization.
International Membership: Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)

National Regulation and International Agreements

Type of property and law	Validity	International Agreements Signed
Patent Protection of patents	20 years
Trademark Agreement revising the Bangui Agreement of 2nd March, 1977, on the creation of an African Intellectual Property Organization, 24th February 1999.	10 years, renewable for consecutive periods of 10 years
Design Agreement Revising the Bangui Agreement of March 2, 1977, on the Creation of an African Intellectual Property Organization, February 24, 1999	5 years, renewable for two further consecutive 5-year periods
Copyright		WIPO Copyright Treaty

Legal Framework

Independence of Justice: Judiciary in Senegal is not completely independent; it is often subjected to political and economic pressures.
Equal Treatment of Nationals and Foreigners: Foreign nationals can, to a large extent, expect an impartial trial from the country’s judicial system.
The Language of Justice: The judicial language used in the country is French.
Recourse to an Interpreter: Having an interpreter is possible.
Sources of the Law and Legal Similarities: The main source of law in the country is the new constitution of 2001. The country’s legal system is based on French civil law system and judicial review of legislative acts. The country accepts compulsory ICJ jurisdiction but with reservations.
Checking National Laws Online: SENLEX: Portal of the Senegalese Law

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Standards

National Standards Organizations: ASN, Senegalese Association for Standardization
Integration in the International Standards Network: The Senegalese standards are generally derived from the French ones. ASN is a funding member of the African Organization for Standardization (ARSO), a member of the International Electrotechnical Commission (IEC) Afiliate Country Program, a correspondent member of the International Organization for Standardization (ISO), and a member of the African Electrotechnical Standardization Commission (AFSEC).
Classification of Standards: The Senegalese standards are the NS. For more information consult the ASN website.
Online Consultation of Standards: You can consult the Senegalese standards List.
Certification Organizations: ASN Senegalese Association for Standardization

Business Practices

General Information: Kwintessential, Guide on Business practices
Opening Hours and Days: Banks open from Monday to Friday. from 08h30 to 11h00 and from 14h00 to 16h00.
Shopping centres open from Monday to Saturday, from 8h00 to 12h00 and from 15h00 to 19h30.
Administrations are open from Monday to Friday, from 7h30 to 13h00 and from 13h30 to 16h00.

Public Holidays

New Years Day	1st January
El am Hejir - Hegire - New Year	Variable
Achoura - Muharrum	Variable
Anniversary of the Prophet - Eid-Milad Nnabi	Variable
Independance Day	4th April
Labor Day	1st May
End of Ramadan	Variable
Eid-ul-Adha or Grand Baïram or Aïd or Tabaski or Id-Ul-Zuha (Bakrid) - Mutton Festival	Variable
Christmas	25th December

Periods When Companies Usually Close

New Years Day	1st January
El am Hejir - Hegire - New Year	Thursday 10th January 2008 (can vary by one day)
Achoura - Muharrum	Saturday 19th January 2008 (can last 2 days)

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